KL, S'pore rubber prices firmer
KL, S'pore rubber prices firmer
KUALA LUMPUR (Reuter): Rubber prices were firmer at midday
yesterday on shortcovering and in line with a higher Indonesian
market, dealers said.
"The market is quiet and business is very slow at the start of
the year," a dealer said. "We are awaiting more enquiries from
Europe to come in slowly after year-end holidays.
Prices followed a higher Indonesian market. Some Asian
enquiries were seen for SMR grades and sheet rubber.
"We expect more demand from foreign consumers as they have to
build up their stocks in view of raw material shortages," a
trader said.
Dealers said the supply situation remains tight. Rains in many
rubber growing areas have affected tapping.
"Producers are still quoting quite high prices," another
dealer said. SMR 20 was indicated at around 415 cents and January
drum latex at 330 to 335 cents.
Trading was cautious following a switch to new spot month
quotations.
At noon, MRELB quoted new trading month Feb RSS 1 buyer at
397.50 cents (US$$1.56), up 1.50 cents from Friday. The market
was closed on Monday for New Year holidays. Feb SMR 20 rose four
cents to 405.50 cents.
Meanwhile, Singapore rubber futures were steadier by the close
on shortcovering interest and position adjustments, traders said
yesterday.
But dealings were thin at the start of the year and activity
was mainly focused on forward RSS1 contracts.
"Some traders are still on a holiday mood," one broker said.
"Several Thai firms remained shut today."
Prices were sightly steadier in line with a similar trend in
the cash market. The steadier prices also reflected position
adjustments at the start of the month.
Traders said recent reports of floods in Malaysia and rains in
the main Thai growing areas sidelined many origin sellers and
sparked renewed concerns among some buyers.
By 0945 GMT, Feb RSS3 was untraded but April, May and June
were each dealt at US$1.62 a kg. Common May/June was last settled
at $1.59 .
The market was closed on Monday for New Year holiday.